A little concession on the part of the government, in the form of tax incentives to platform operators and possibly end-users, could be the catalyst for speeding up the process of introducing the cash-lite society Ghana deserves, George Babafemi – Chief Operating Officer eTranzact Ghana, an e-payment solutions provider – has said.
He told the B&FT that if the tax obligations of platform operators are reduced, the benefits could be passed on to end-users; and goods and services paid for electronically could be cheaper than the same services paid for by means of cash.
“Whether here or elsewhere, everybody wants to buy things irrespective of the medium of payment. So, if the government wants to see more electronic payments for goods and services, it should be ready to offer tax incentives to both platform owners and consumers, and that will encourage people to use more of these electronic platforms,” he said.
With government aggressively pushing for a cash-lite society, which is expected to deepen financial inclusion, curb fraudulent activities and deepen transparency, the e-payment expert believes incentivizing players and not burdening them with fees and charges is the way to go.
Even though e-payment platforms are on the rise, with the mobile money platform being the most predominant, some industry players believe the fees and charges are serving as a deterrent to achieving a cash-lite society.
The United Nations-based Better Than Cash Alliance, in a new report, noted that despite the massive improvements recorded in digital payments among individuals, businesses and government, cash still remains the predominant mode of payment in terms of value and volume.